Down payment and indebtedness ratios:how French banks limit their mortgage risks

Michel Dietsch and C. Welter-Nicol

Rue de la Banque, 2016, issue 21

Abstract: French banks habitually use indebtedness ratios when they grant mortgages to households. In France, this policy is not driven by regulatory constraints but allows banks to avoid excessive risk-taking. This issue of Rue de la Banque assesses the effectiveness of these down payment and indebtedness ratios as tools to contain portfolio credit risk.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:rueban:2016:21

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